Question

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows:

	Quarter in Coming Year					Following Year
	First	Second	Third	Fourth		First Quarter
Sales forecast	$460	$334	$351	$399		$399

On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $351. What is the forecast for Paymore’s cash receipts in each quarter of the coming year? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Quarter	Collections
1
2
3
4

Answer 1

	Quarter in Coming Year				Following Year
	First	Second	Third	Fourth	First Quarter
Sales forecast	$460	$334	$351	$399	$399
Cash Receipts Schedule
	First	Second	Third	Fourth
1/3 in same quarter	153.33	111.33	117.00	133.00
2/3 in following quarter	234.00	306.67	222.67	234.00
Expected Collections	387.33	418.00	339.67	367.00